The marginal rate of substitution of an isoquant curve is the rate at which:
A) inputs must be substituted for one another to keep costs constant.
B) inputs are substituted for output.
C) inputs must be substituted for one another to keep output constant.
D) the marginal productivity of a factor declines.

Question

Quizplus · Accepted Answer

The marginal rate of substitution on an isoquant curve represents the rate at which one input can be substituted for another while keeping the output level constant.

The Marginal Rate of Substitution of an Isoquant Curve Is